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Islamic Coin Versus Crypto Coin (part-1)
There is lots of confusion going on what is the difference between Islamic coin and crypto coin . In our blog we try to clear the confusion.
Islamic coin and crypto coin are two different types of currencies that operate on different principles and have distinct characteristics. Islamic coin is based on the principles of Islamic finance, while crypto coin operates on the block chain technology. In this blog, we will explore the differences between these two types of coins.
Islamic Coin
Islamic coin is a digital currency that operates on the principles of Islamic finance. Islamic finance is a system of finance that is based on the principles of shariah, which is the Islamic law. The principles of shariah prohibit charging or paying interest, engaging in speculative or unethical investments, and investing in industries that are considered harmful to society, such as alcohol, gambling, and pornography.
Islamic coin, therefore, is designed to operate within the framework of Islamic finance. It is a digital currency that is backed by tangible assets, such as gold or silver, and is used for transactions within the Islamic financial system. Islamic coin is also designed to promote social responsibility, ethical investments, and sustainable development.
One of the key features of Islamic coin is that it is based on a profit-sharing model. In this model, the profits generated by the currency are shared between the holders of the currency and the issuer of the currency. This is in contrast to conventional currency, where profits are generated through interest payments.
Another important feature of Islamic coin is that it is based on a decentralized system. This means that there is no central authority that controls the currency. Instead, the currency is managed by a network of users who validate and verify transactions through a consensus mechanism. This ensures that the currency is transparent, secure, and immune to manipulation.
Crypto Coin
Crypto coin, on the other hand, is a digital currency that operates on the blockchain technology. Blockchain technology is a decentralized ledger that records transactions in a secure and transparent manner. Crypto coin is designed to be used as a medium of exchange and to operate outside the traditional banking system.
One of the key features of crypto coin is that it is based on a decentralized system. This means that there is no central authority that controls the currency. Instead, the currency is managed by a network of users who validate and verify transactions through a consensus mechanism. This ensures that the currency is transparent, secure, and immune to manipulation.
Another important feature of crypto coin is that it is based on cryptography. Cryptography is a method of encrypting data to ensure that it is secure and confidential. Crypto coin uses cryptography to secure transactions and to protect the privacy of its users.
Differences between Islamic Coin and Crypto Coin
There are several differences between Islamic coin and crypto coin. The main differences are as follows:
- Basis of Value: Islamic coin is based on tangible assets, such as gold or silver, while crypto coin is based on the perceived value of the currency.
- Profit Sharing Model: Islamic coin is based on a profit-sharing model, where the profits generated by the currency are shared between the holders of the currency and the issuer of the currency. Crypto coin does not have a profit-sharing model.
- Decentralized System: Both Islamic coin and crypto coin are based on a decentralized system. However, Islamic coin is designed to operate within the framework of Islamic finance, while crypto coin operates outside the traditional banking system.
- Use of Cryptography: Crypto coin uses cryptography to secure transactions and protect the privacy of its users. Islamic coin does not use cryptography.
- Regulation: Islamic coin is regulated by Islamic financial institutions, while crypto coin is not regulated by any central authority.
Islamic coin and crypto coin are two different types of currencies that operate on different principles and have distinct characteristics. Islamic coin is based on the principles of Islamic finance and is designed to promote social responsibility, ethical investments, and sustainable development. Crypto coin, on the other hand, is based on the blockchain technology.
Note :- Blockchain technology is an advanced database mechanism that allows transparent information sharing within a business network.
